Manchester council approves next round of budget cuts with warning of ‘tough times'

Manchester town hall has given the go-ahead for year two of a £170m programme of spending cuts. City chiefs have passed the budget for 2012/13 – giving the green light to a £61m package of savings, on top of £109m slashed from the 2011/12 budget.

Manchester town hall has given the go-ahead for year two of a £170m programme of spending cuts.

City chiefs have passed the budget for 2012/13 – giving the green light to a £61m package of savings, on top of £109m slashed from the 2011/12 budget.

Officers have also been told to draw up plans to save an extra £80m by 2015.

The council set out a devastating programme of service cuts – including 2,000 job losses – in February last year.

It came after the government announced it was slashing its funding to the city by 21 per cent – far higher than the national average.

The decision has meant reductions in front-line services such as adult social care, early years provision, street cleaning, libraries and free parking.

Coun Jeff Smith, the council’s executive member for finance, told the meeting the savings were on track.

He said: "This, I’m afraid, is not a good news budget. The scale and speed of reductions were such that we were left with no option but to set out on unprecedented cuts to jobs and services.

"It’s not going to be an easy year ahead and I’m sorry to say things aren’t going to get much easier any time soon."

Coun Smith confirmed council tax in the city would be frozen for the third year running, thanks to a special government grant. But he warned that would leave a hole that would need filling in future years.

He also formally announced £8.1m to be invested in helping the city’s most troubled families.

The council’s Liberal Democrat opposition had put forward amendments to the budget calling on the town hall to:

Reverse the introduction of Sunday parking charges, brought in last year

Reduce town hall spending on consultants

Eat into the council’s cash reserves – traditionally set aside to help meet unexpected costs

The Lib Dem amendment was rejected. Coun Marc Ramsbottom, Lib Dem group leader, said: "There needs to be a fundamental shift in the way the council does business."

Passing the budget, council leader Sir Richard Leese said: "This is a Labour budget for Manchester that is doing the best for Manchester."

MEN repoerter Deborah Linton filed live updates from the council chamber. Replay our live blog from the meeting by clicking on the grey box below, or if you are using a mobile deviceclick here